Changes to LOLZ Farming Coming
On Saturday the 25th, we will be implementing a new model for calculating LOLZ Farming rewards.
Farming rates are currently determined daily based on the weighted-average of the most recent trades. Recently we have become concerned that short term market manipulation on some of the more thinly traded tokens (including LOLZ) can result in manipulation of LOLZ Farming rewards.
A recent attack on LOLZ prices caused the price of LOLZ tokens to temporarily crash, driving LOLZ Farming rates thru the roof. While precautions have been made to limit the ability to crash the LOLZ token price going forward, it did expose the vulnerability in our current price model to short term market manipulation.
After a vote of the LOLZ Governors, and to help protect our current stakers and ensure fair rewards for all farmers, going forward the price used to determine LOLZ farming rates for each token (including LOLZ) will be estimated based on a unique 7-day rolling average. This new price model is intended to minimize the impact of short-term market volatility and price manipulation on farming rates.
How Will Token Prices Be Determined
The 7-day rolling average price used for each token will be created daily by first calculating the daily weighted trading price averages for the last 9 day. The highest and lowest daily average prices will be thrown out, and the 7 remaining daily averages will be averaged to provide the 7-day rolling average.
How Will The Change Impact Farming Rates
We expect farming rates to be more stable and provide similar rates as under the current model. However, short term, inflated or reduced farming rates can occur for individual tokens under this model depending on the trends in token prices. However, long term farming rates should average out the inflated and reduced impacts. Since most farmers are long term farmers we expect most farmers will see similar, but more stable, farming returns.
Questions or Concerns?
We believe that this change was needed and should have little impact on long term farming rewards. But we also understand change can be concerning. If you have any questions or concerns regarding this change, please let us know by dropping a comment below or checking in our Discord where you can DM the Joker in Charge @captaincryptic.
About the LOLZ Project
The LOLZ Project is an engagement project with the mission of spreading laughter and joy on the Hive blockchain.
Use the !LOL or !LOLZ command in comments to share a clean joke and tip the author an $LOLZ token.